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Samsung Group’s Market Cap Increases by 54 Tril. Won in 2019
Despite Samsung Electronics’ Earnings Shock
Samsung Group’s Market Cap Increases by 54 Tril. Won in 2019
  • By Yoon Young-sil
  • May 7, 2019, 11:11
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The total market cap of Samsung Group's 16 listed affiliates has increased by more than 50 trillion won (US$42.74 billion) from the beginning of the year.

Although Samsung Electronics Co. showed poor performance in the first quarter of this year, the total market cap of listed subsidiaries of Samsung Group has increased by more than 50 trillion won (US$42.74 billion) from the beginning of the year.

The combined market cap of the 16 listed companies affiliated with Samsung Group came to 448.40 trillion won (US$383.24 billion) as of May 2, according to the data from market research company FnGuide on May 6. The figure grew by 54.75 trillion won (US$46.80 billion), or 13.91 percent, from 393.64 trillion won (US$336.45 billion) at the beginning of the year.
 

The market cap of Samsung Electronics increased by 47.29 trillion won (US$40.42 billion), or 18.38 percent, to the current 304.62 trillion won (US$260.36 billion) from 257.33 trillion won (US$219.94 billion) at the beginning of the year. The company posted 6.23 trillion won (US$5.33 billion) in consolidated operating profit in the first quarter, down 60.2 percent from a year earlier. The figure was also the lowest in 10 quarters since the third quarter of 2016. However, the price of Samsung Electronics shares rose as there have been growing expectations that the semiconductor market will pick up soon after it hit the bottom.

The market cap of Hotel Shilla Co. also grew by 56.43 percent from 2.90 trillion won (US$2.48 billion) to 4.54 trillion won (US$3.88 billion). It showed surprisingly good business showings in the first quarter this year.

Multicampus Corp., which was spun off from the Cyber Education Division of Samsung Human Resource Development Center, also saw its market cap increase by 21.44 percent, Samsung Heavy Industries Co. by 17.75 percent, Samsung Fire & Marine Insurance Co. 16.25 percent and Cheil Worldwide Inc. 15.92 percent. However, the market cap of Samsung BioLogics Co. decreased by 9.89 percent from 24.75 trillion won (US$21.15 billion) to 22.30 trillion won (US$19.06 billion) over the same period as the company was under investigation by the prosecution for alleged accounting fraud.

The combined market cap of South Korea’s top five business groups, including Samsung Group, rose by 101.26 trillion won (US$86.54 billion), or 14.56 percent, from 695.21 trillion won (US$594.19 billion) to 796.46 trillion won (US$680.74 billion) over the same period.

The total market cap of firms listed on the benchmark KOSPI and secondary KOSDAQ markets increased by 169.31 trillion won (US$144.71 billion) from 1,545.08 trillion won (US$1.32 trillion) to 1,714.40 trillion won (US$1.47 billion) over the same period. In short, the increase in market cap of nation’s five biggest groups accounted for 59.8 percent of the total.

By group, the combined market cap of 11 companies under Hyundai Motor Group came to 99.40 trillion won (US$84.95 billion), showing the highest growth of 17.85 trillion won (US$15.25 billion), or 21.88 percent, since the beginning of the year. Hyundai WIA Corp. had the biggest increase at 39.89 percent, followed by Kia Motor Corp. at 36.89 percent, Hyundai Glovis Co at 28.29 percent, Hyundai Mobis Co. at 28.11percent and Hyundai Motor Securities Co. at 23.21 percent.

Hyundai Motor Group moveduponenotchfrom fourth to third in terms of market cap again, surpassing LG Group. The combined market cap of LG Group’s affiliates came to 95.68 trillion won (US$81.78 billion), up 11.36 trillion won (US$9.71 billion), or 13.47 percent. SK Group, which ranked second, saw its market cap rise by 15.69 trillion won (US$13.41 billion), or 14.51 percent, to 123.84 trillion won (US$105.85 billion) compared to the beginning of the year, while that of POSCO Group increased by 1.60 trillion won (US$1.37 billion), or 5.82 percent, to 29.15 trillion won (US$24.92 billion).